MANILA, Philippines — Senate President Sherwin Gatchalian on Monday urged the Philippines to diversify its export, investment and tourism markets to reduce its reliance on traditional trading partners, particularly China, amid shifting geopolitical conditions.
Gatchalian said the country should strengthen economic ties with Southeast Asian nations, Japan, South Korea and Europe to cushion the impact of disruptions in its relations with major markets.
“We can no longer rely only on our traditional markets, like China, because the situation is changing,” Gatchalian told reporters on the sidelines of an event at the Marriott Hotel in Pasay City.
“Strategically, we need to diversify our markets,” he added.
Gatchalian acknowledged that reducing dependence on China would be challenging given its large consumer market and proximity to the Philippines, but said the country needed to explore alternative destinations for its exports, investments and tourism industry.
“China has 1.2 billion people, and it is close to us, just one or two hours away. So it is really a big market,” he said. “But there are other markets we can explore, such as Japan, Korea, Southeast Asia and even Europe. It is not easy, but we need to do it.”
He also pointed to relatively low trade and tourism activity between the Philippines and other members of the Association of Southeast Asian Nations (Asean), saying stronger regional economic ties could create opportunities for trade and investment.
Gatchalian said diversifying markets would help the Philippines respond more quickly to geopolitical shifts and protect its economy from disruptions affecting established trading partners.
He cited changing relations between the United States and Europe as an example of why countries should avoid relying too heavily on a limited number of markets.
Asked about a proposed Senate resolution concerning Chinese Ambassador Jing Quan’s remarks about the possible use of force, Gatchalian said senators should carefully review the measure’s wording before deciding whether to support it.
“I read about it in the news. We need to discuss the contents of the proposal carefully and study the language very well,” he said.
Gatchalian said the wording was important given public concern over remarks perceived as threatening toward the Philippines.
“It is not right to threaten us in our own country,” he said.
Despite the tensions, Gatchalian stressed the need to maintain diplomatic engagement with Beijing amid the longstanding maritime dispute in the West Philippine Sea.
“We have a disagreement in the West Philippine Sea, and that will not be resolved immediately. It is important that we do not worsen the conflict,” he said.
He urged diplomats to exercise caution in their public statements, saying peaceful and stable relations were essential to attracting investments, supporting businesses and creating jobs.
“Negotiations and continuous diplomacy are important,” Gatchalian said.
